We agree that people should pay their student loan debts, and, that it is unfair that some who have moved overseas are avoiding payment while people who have remained in New Zealand don’t have that option. But…sometimes factors beyond a person’s control mean that a student loan debt remains unpaid. With interest and penalties the amount of the debt can double quite quickly and spiral out of control. Even if the debtor tries to make payments, they often find that the new interest and penalties cause the debt to increase faster than their ability to repay. It is possible to negotiate a repayment arrangement and we can help with this. The benefits of a repayment arrangement is that it brings the debt under control and stops you being hounded by the IRD. On the other hand, for some debtors, the increasing size of their student loan debt means that bankruptcy will become an attractive option. If the debtor plans to remain living outside New Zealand for a few years, a New Zealand bankruptcy may have little downside in terms of credit rating and long term financial position. The IRD does need to chase debts, but chasing too aggressively may leave the IRD worse off.http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10858246